What The Hell is Going On | BCBS/Aetna/Cigna
- Thread starter newbie2001
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InsuranceGuy29
Guru
- 842
I use it as a urinal when I'm doing yard work.
It's funny you say that . The stock mkt has down massively better under democrats than republicans the past 30 plus yrs . The mkt under Biden has far outperformed Trumps mkt. Pay close attention to the bond mkt . Rates have sky rocketed the past 3 weeks anticipating a possible Trump win. It's Petrified of massive inflation with his Tariffs . Rates could easily double ,
InsuranceGuy29
Guru
- 842
Massive inflation artificially pumps up the stock market. Companies are gaining by draining most Americans. This isn't REAL growth. Between inflation, job cuts, and lower interest rates during and after covid, these major companies have had a field day with our money, at our expense. We've been getting gouged like crazy.
Signs are obvious. The mapd and pdp market had a massive shake up in plans this year due to govt intrusion and new regulations. Carriers didn't know how to design plans and didn't know what their competitors were doing.
Same thing happened when the obamacare market imploded from 2014 to 2017.
The carriers with under priced PPO plans were targeted and put out of biz like Assurant. Each year I moved clients to lowest cost PPO and that plan closed the following year.
Many stopped paying commish or closed new enrollments mid OEP after getting too much volume. Only way to slow down was to beg cms or stop paying agents. Both happened.
Mapd and pdp markets will see the same thing happen, with 1 to 3 carriers only, and then the recovery occurs.
Same thing happened when the obamacare market imploded from 2014 to 2017.
The carriers with under priced PPO plans were targeted and put out of biz like Assurant. Each year I moved clients to lowest cost PPO and that plan closed the following year.
Many stopped paying commish or closed new enrollments mid OEP after getting too much volume. Only way to slow down was to beg cms or stop paying agents. Both happened.
Mapd and pdp markets will see the same thing happen, with 1 to 3 carriers only, and then the recovery occurs.
And many of them also have medical "products" - clinics, physician groups, hospitals, pharmacies... of course they are also selling insurance and that is PART of the medical healthcare industry in this country. When they own the insurance, some of the in network facilities, the physicians, pharmacies... as some of those companies do, there are few checks and balances on prices or reimbursements (and yes Medicare sets reimbursement rates but MAP's operate differently with respect to that - especially when they own more than just the insurance portion of the industry). They then control many of the rules, the care, the money, and have the power.
Health care is a public good and less like a free market sales of interchangeable widgets. It needs to be managed differently because of that - including all the pieces of that industry. That would include insurance.
The issue with for profit companies being involved with things that directly affect patient care is that a chunk of money has to go to the shareholders; finance teaches that your first responsibility it to your shareholders. And so in this case not to your patients/clients. Since that money can not be spent on patient care this means a lower percent is spent on patients than otherwise would be. That drives up prices and may or may not compromise care (for example there are savings in denying referrals, inpatient rehab - that happens around here, etc. saves money and compromises care). That is not the case in non-profit entities and with OM.
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And why I bitch about the $0 stuff is that often to get good medical care in many parts of the country you need OM because with MAP's the networks are sparse and may be with some of the lower rated medical facilities. If you don't care about "good" then I suppose it doesn't matter. The other issue is when you do need good care likely you need it for reasons that will mean you will fail medical underwriting and then you are screwed.
Yes but since the bond market rates are rising (presuming what was posted is correct, I haven't checked) that usually happens when it is anticipated that the stock market will fall and when it actually does fall (there is a lag though with the later). Which it will if prices go us as consumer spending goes down. As much of what Americans buy is imported, including almost all our winter fruit in the grocery store for example, that means prices will go up since costs are going up. Look at our supply chain and what happened during covid when that was disrupted. Tax any step in our supply chain and that will lead to rising prices as well. That leads to inflation. People buy less. Stocks fall. People move to bonds.
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It's irrelevant who gets in . It's game over . Debt is unsustainable. It's grown under all party's . As far as stocks . They've gone up whether we had inflation or no inflation , weak or strong $, interest rates high or low , good or bad earnings . The mkt stands at one of the highest valuations in history right now with overall Medicore at best earnings . Look at Apple . 30 plus p/e with basically zero growth in 4 yrs . . We haven't had a real recession ( Covid was a 4 month event drop) since 2009. A real doozy is coming .
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newbie2001
Super Genius
- 176
All of this slightly humorous to me because I got into the insurance business because I had family members tell me it's a good business to be in. Recessions don't affect it. It's "recession proof".
Now I really get to test those words.
